As the the remaining lease term of a Headley domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, more than one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Headley will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Headley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy discussions with the landlord of her basement flat in Headley, Amy commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work completed in October 2014. The landlord’s fees were negotiated to under 600 pounds.
Last Christmas we were contacted by Mr and Mrs. Y Norbert , who purchased a studio flat in Headley in September 2009. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Headley with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2106. Given that there were 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.
Last Autumn we were approach by Mrs T Thompson , who took over the lease of a purpose-built apartment in Headley in May 2008. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Headley with a long lease were worth £275,000. The average ground rent payable was £45 billed monthly. The lease came to a finish in 2095. Taking into account 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.